Proposed 401(k) Laws: What You Need to Know

Chief among the proposed changes is a greater role for annuities

Participants in 401(k) plans are likely to see substantial changes if Congress passes a package of modifications to the U.S. retirement system.

Chief among them is a greater role in 401(k) plans for annuities—insurance contracts under which workers pay an insurer a lump sum in return for a lifetime income. While traditional pension plans typically provide such a feature, it is largely absent from 401(k)-style accounts.